How to finance a Florida Condo ?

Question

Seeking advice purchase a two story condo from a wholesaler last year with my credit cards fixed the property up spending about 105k plus another 45k in labor and materials apply to refi and was told the condominium community had new Florida laws that required all condo are upto date before qualifying for a refi

Currently have it rented any option out there the credit cards were Intres free for a year now Intrest is like $2900 a month

Chris Seveney · Answer

This is the issue when leveraging credit cards and thinking real estate can only go up. Most people think this strategy works becasue some guru sold them on it, but it rarely if ever does.

My recommendation, sell for a loss, pay down the credit card and take it as a lesson learned and just pay off the credit card over time with the balance. Hopefully the haircut you take is not too big.

Stanley Yeldell · Answer

Rafael—sounds like you've put in a lot of work on the condo! With Florida’s updated condo laws, many traditional lenders are stricter on financing. You might consider a DSCR rental loan or even a private money refi if the property cash flows well—those options are often more flexible on the condo association’s status. Could help get you out from under that high credit card interest.

Rafael Trinidad · Answer

Condo information 3 million to fix only had about $500,000 in reserves and only 70% of the units were making monthly hoa payments

Erik Estrada · Answer

This sounds like a non-warrantable condo. You should still be able to finance this on a DSCR loan, however it will require some exceptions to be made and the rate will be high.

Rafael Trinidad · Answer

Eric thanks for replying the condo was updated top to bottom the condominium of 130 units some the units have termite damage and was told until all units are fix i cannot refi

Erik Estrada · Answer

Hey Rafael,

I am having trouble understanding your post. What exactly does the condo need to be up to date in regards, to?

If it is considered a non-warrantable condo, you can still obtain financing through a DSCR loan. However the lender will want to see why it is considered non-warrantable.

My biggest concern with a lot of properties in Florida is the insurance coverage. Does the condo have an HOA? Is the property in a flood/wind zone?

How to finance a Florida Condo ?

How to finance a Florida Condo ?

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